The Evolution of CSR Information Disclosure From Web 1.0 to Web 2.0

1. Introduction

Information technology is ever-changing and crucial to the development of businesses, economies, and societies. The introduction of computers and the proliferation of the networks have far-reaching effects on the way businesses are run. Over the past 40 years, the use of technology has facilitated and accelerated the CSR debate and changed the nature of the CSR discussion. Leung et al. (2013) review the past literature on media platform and observe a scarcity of papers specifically addressing CSR practices within social media. This highlights a research gap in examining how firms communicate CSR through social media platforms. Hence, it's crucial to grasp the influence of the technological revolution on CSR disclosure. This chapter intends to investigate the influence of technological advancements on CSR disclosure channels. It will examine the interconnected relationships between evolving technology and the evolving requirements of stakeholders at various stages of technological transformation.

Before the advent of Web 1.0, firms mainly use annual reports and traditional media to disclose CSR (Figure 1). The dissemination of CSR statements is limited due to the limited communication capacity and audience. Annual reports, being subject to audit, serve as the official means through which companies release their CSR information, as opposed to press releases and advertisements. However, firms' CSR information and themes vary greatly depending on how they identify their stakeholders. For example, between 1973 and 1974, the CSR information disclosed by FTSE 500 firms in their annual reports vary from year to year (Abbott & Monsen, 1979). In addition, firms are unable to obtain timely comments and feedback from stakeholders after releasing CSR-related information. With the rise of Web 1.0 in the 1990s, firms start to complement their annual reports by introducing stand-alone reports and online CSR disclosures. These stand-alone reports effectively address the absence of CSR disclosure in conventional annual reports, addressing the fragmentation of CSR information in terms of its comprehensiveness and depth. Meanwhile, the emergence of Internet accountability arising from Web 1.0 helps to rise CSR information transparency. The widespread adoption of Web 1.0 technologies not only raise awareness of CSR, but also prompted firms to assess the accessibility of CSR information to a wider group of stakeholders. Although Web 1.0 is only the initial stage of Internet development, compared with today's highly interactive Web 2.0 stage, the Internet during this period was only a static web page that did not involve user activities.

Figure 1.

Internet technology impacts on CSR disclosure channels over the years

Web 2.0, a dynamic and interactive online environment, has fundamentally changed how information is created and shared (Chen et al., 2011). This transformative phase has significantly influenced business practices, especially concerning CSR disclosure. Web 2.0 technologies enable individuals and organizations to participate in two-way communication, promoting transparency and authenticity. The emergence of social networks and CEOs' presence on these platforms has further shaped businesses' interactions with stakeholders. This shift in engagement from Web 1.0 to Web 2.0 signifies a move from static, one-way communication to real-time, two-way dialogue, enhancing CSR transparency and effectiveness.

Overall, in the era of rapidly advancing Internet technology, CSR disclosure has undergone significant transformation. It is important for stakeholders, firms and policymakers to understand the far-reaching impact of technology on CSR disclosure. While Web 2.0, represented by online social media, enable firms to disseminate information more efficiently, it also brings new challenges that require serious consideration, such as authenticity of CSR Information, selective CSR practices and disclosure behaviours and different preferences in CSR communication channels. This chapter also make corresponding suggestions on these issues. The following sections shed light on the implications of technological transformations on CSR disclosure.